How Accidents Impact Your Insurance Premium

Car accidents can have a direct impact on your insurance premium, often leading to higher rates at renewal.

Insurers assess your driving history to determine risk, and a recent accident can make you seem riskier to insure.

How Premiums Are Affected

If you're found at fault in an accident, your insurer may raise your premium significantly.

The increase depends on the severity of the accident, the cost of the claim, and your previous driving record.

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Rate Increases After an Accident

On average, premiums can rise anywhere from 20% to 50% after an at-fault accident.

Drivers with multiple accidents or serious violations may face even steeper increases.

These increases typically stay on your record for three to five years, depending on your state and insurer.

Accident Forgiveness Programs

Some insurers offer accident forgiveness, which prevents your first at-fault accident from affecting your premium.

This feature is often available for purchase or earned after a certain period of clean driving.

Not-at-Fault Accidents

If another driver is clearly at fault, your premium might not increase.

However, insurers still review all claims, and in some cases, even not-at-fault accidents can impact your rate.

Preventing Future Increases

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Avoid future rate hikes by practicing safe driving, taking defensive driving courses, and keeping a clean driving record.

Review your policy annually and compare quotes to ensure you’re getting the best rate after an accident.

Conclusion

Accidents can raise your insurance premiums, especially if you're found at fault.

Understanding how claims affect your rates and using available discounts can help you manage costs over time.